Revenue Leakage Solution

Scenario

Telecommunications carriers are finding it more challenging to maintain profitability of core services. Apart from marginalised revenue gains from network plans, revenue leakage is an ongoing threat to profitability threat, and a $100B industry problem.

Business Requirement

Inter-carrier settlements are an essential part of the telecom business, and a primary source of revenue leakage. For most carriers, inter-carrier settlements represent one of their largest sources of revenue, and account for up to 50% of operating costs. It is critical that interconnect billing is correct in terms of both usage and termination rights on the network, as well as verifying that other carriers are correctly billing them.

The sheer volume of data to be analyzed is beyond most BI systems. A typical wireless carrier may collect an average of 250 million CDRs daily. This required a six-hour query time for summarizing a single day’s worth of vital CDRs for revenue assurance analysis and more than 23 hours for a traffic pattern analysis.

The business demands more real time decision making on network and interconnect usage.

Solution

Netezza Performance Server [NPS] - to reduce operational costs and ensure accurate billing and inter-carrier settlements.

Solution Details

The revenue assurance process compares delivered transactions with invoiced transactions to identify missing or lost revenues, in an effort to minimise lost revenue.

Providing this information when needed, allows for immediate action to rectify
inaccurate or missed billing. Due to the significant volume of interconnect CDR's, seemingly insignificant errors in billing can quickly escalate to become very significant. This requires that carriers continually monitor and correct their inter-carrier billing as it is happening.

Solution Outcomes

With the NPS system installed, reduced revenue query times to less than 30 minutes, producing results on complex queries and revenue analysis on 120 days of data.

Traffic pattern analysis was reduced to less than 50 minutes.

The carrier was able to automate its revenue assurance programs to improve inter-carrier billing and maximize profitable network utilization.

Savings Expectations

The Netezza solution is projected to save millions of dollars in previously missed billings.

The system’s scalability will eliminate the need for expensive upgrades of existing general-purpose servers and storage. This will lower ongoing database administration costs.

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